Boston Beer Company Inc (SAM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.40% | 42.44% | 41.24% | 38.77% | 46.90% |
| Operating profit margin | 3.77% | 4.98% | 4.34% | 0.39% | 14.06% |
| Pretax margin | 4.35% | 5.46% | 4.37% | 0.34% | 14.07% |
| Net profit margin | 2.97% | 3.80% | 3.22% | 0.71% | 11.05% |
The Gross profit margin for Boston Beer Company Inc has shown fluctuations over the past five years, starting at 46.90% in 2020, dropping to 38.77% in 2021, and then gradually increasing to 44.40% in 2024. This indicates changes in the company's ability to generate profit from its revenue after accounting for the cost of goods sold.
In terms of Operating profit margin, the company experienced a significant decrease in 2021, with a margin of only 0.39%, followed by a gradual recovery to 3.77% in 2024. This ratio reflects the company's efficiency in managing its operating expenses relative to its total revenue.
The Pretax margin, representing the company's profitability before accounting for taxes, also saw a notable decrease in 2021 (0.34%) and recovered to 4.35% by 2024. This metric shows the ability of the company to generate profit from its core operations before tax obligations.
Lastly, the Net profit margin, which shows the company's overall profitability after all expenses have been deducted, decreased from 11.05% in 2020 to 2.97% in 2024. This indicates the company's ability to convert revenue into net income and reflects its overall financial health.
Overall, the profitability ratios of Boston Beer Company Inc show fluctuations over the years, with varying levels of profitability and efficiency in managing costs and generating income. It would be important for the company to analyze these trends further and implement strategies to maintain or improve its profitability ratios in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.08% | 6.99% | 6.39% | 0.58% | 17.71% |
| Return on assets (ROA) | 4.78% | 5.33% | 4.73% | 1.05% | 13.92% |
| Return on total capital | 8.29% | 9.28% | 8.50% | 0.81% | 25.52% |
| Return on equity (ROE) | 6.52% | 7.07% | 6.29% | 1.48% | 20.06% |
Boston Beer Company Inc's profitability ratios have shown fluctuating trends over the past five years. The Operating return on assets (Operating ROA) decreased significantly from 17.71% in 2020 to 0.58% in 2021 but recovered slightly to 6.39% in 2022 and continued to improve to 6.99% in 2023, before dropping to 6.08% in 2024. This indicates a mixed performance in generating operating profits relative to the company's total assets.
Similarly, the Return on assets (ROA) ratio also experienced a notable decline from 13.92% in 2020 to 1.05% in 2021, then gradually increased to 4.73% in 2022 and 5.33% in 2023, before slightly decreasing to 4.78% in 2024. This ratio reflects the company's ability to generate profits from its total assets.
The Return on total capital ratio showed a substantial decrease from 25.52% in 2020 to 0.81% in 2021, followed by a rebound to 8.50% in 2022 and 9.28% in 2023, and then a slight drop to 8.29% in 2024. This metric assesses the company's efficiency in generating returns from both equity and debt capital employed.
Moreover, the Return on equity (ROE) ratio also exhibited a decline from 20.06% in 2020 to 1.48% in 2021, then increased to 6.29% in 2022 and 7.07% in 2023, before slightly decreasing to 6.52% in 2024. ROE reflects the company's profitability from shareholders' equity.
In conclusion, Boston Beer Company Inc's profitability ratios have displayed varying trends over the past five years, indicating fluctuations in operational efficiency and profitability levels. Further analysis and examination of the company's financial performance and strategic decisions are warranted to better understand the factors driving these fluctuations.